I don't think our taxes are as high as 40% of our costs, but they definitely add up. We pay federal excise tax on what we produce (fortunately, we are exempt from state excise taxes...for now). Then, we pay sales tax on what we sell at retail in our taproom. Sales tax is levied against us at a higher rate than normal in our city because the product we're selling is an alcoholic beverage. I would assume that's fairly common in most larger metropolitan areas.

We don't get taxed on our raw materials, thankfully. But I would guess that there are import tariffs levied on the importers/suppliers that get passed on to us in the form of higher ingredient costs. The vast majority of our malt comes from overseas, as we specialize in what we refer to as "iconic lager styles" (read: lots of imported European malt). You could count the huge fees we pay to the city and state for licensure (both to operate as a brewer and as a retail taproom) as tax-like fees – the hit we take from those fees is pretty substantial.

edit: Oh, and then we get taxed on our income on both the state and federal level, which is generated from beer sales that have already been subject to excise tax, sales tax or both. Lots of double (maybe even triple) taxation going on there.

One of the first things I did when I decided to open a brewery was sign a hop contract. If you're relying on hops that are scarce in the market (i.e., newer experimental varieties like mosaic, el dorado, citra, etc.), you'd do well to contract. We did a one-year contract with a couple of brokers for our first year. Once we started to see our beer sell, we signed a few 3-year contracts to ensure that we would have the varieties we depend on for years to come. I think it's one of the smartest things we did as a startup. Good luck!

I'm finding most hops to be available on the secondary market for a bit of a premiuim price. I would have preferred to have gone the contract route earlier on in our process, but wasn't absolutely sure that we would get the brewery off the ground. Now that we're moving along at a much better pace, I'll start working on some contracts. For the time being we'll be using the secondary markets. We'll survive one way or another.

Do you have any idea what the typical Kolbach index is for the Prostejov CZ Pils? Did CMG send any data other than protein content and CG extract? I'm wondering if this is undermodified CZ malt, or if it's more modern CZ malt.

I also use a blend of Weyermann FM pilsner and a German pilsner in our Neü Bohemian Pilsner. Love the FM stuff, but it would be cool to see how the Prostejov malt compares.

Supply is going to be tight on those varieties for the foreseeable future. One of the first things I did when I decided to open a brewery was sign a hop contract for all the varieties I knew I wanted. We are about to open our doors next month (knock on wood), but I contracted for hops with two brokers in December of 2012. Still, I wasn't able to get everything I wanted. I ended up buying some hard-to-find varieties on the secondary market. Yes, I paid a bit of a premium for these hops, but it depends on how important a particular variety is to your beer. For me, I had a very specific idea of what hops I wanted to use. Hopefully, it will be worth it!

FWIW, I like to mix in a non traditional IPA hop into a blend fairly often - as something in the background, the thing you like but can't put your finger on. I've used about all the Hallertau derived hops (of which Emerald is one), Saaz, Motueka ( Saaz derived), etc. I love Mt Hood in an IPA, as part of the blend. I think the Smaragd will work really well as an accent.

Pawtucket Patriot you hit just right. Schell's from New Elm, Mn. I haven't been able to find it here on the front range in Colorado, but I have family in Omaha and they can get the Emerald Rye. It has such an interesting profile that I am considering using them in my next batch.

I love Emerald Rye. I think Schell's is making some of the best beer in Minnesota, but they frequently get overlooked because they're perceived as a legacy/nostalgia brand among younger craft consumers.

I don't think you'll regret experimenting with Smaragd. I've had the best results using them as a late flavor addition (~20 minutes) and as a flameout/whirlpool hop. Good luck!

Is anyone able to give me some informaton about "Emerald Hops". I had a rye that had as an ingredient, emerald hops and I haven't been able to find any info. I would like to experiment with them iin mnext brew.

I've used Smaragd (this is just the German word for "emerald") hops quite a bit in the last year. They are like hallertauer, as you'd expect, but they are lightly fruity with sort of a faint orange/citrus thing. Very nice aroma hop.